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“Today’s actions are consistent with the comprehensive liquidity plan outlined in our earnings call, and we believe the additional liquidity puts Textron and TFC in a strong position for 2009 and beyond,” said Textron Chairman and CEO Lewis B. Campbell. “It is prudent to ensure cash liquidity in the current environment, and the bank credit lines provide such liquidity at very attractive terms. This liquidity strengthens Textron and will put TFC in a stronger position as it executes its downsizing strategy.”

The company said that its liquidity plan includes the liquidation of non-captive finance receivables, asset sales at TFC, new TFC securitizations or securitization extensions, capital market alternatives, Textron asset sales and cash generated by manufacturing operations.

The stock Wednesday shed nearly one-quarter of its total market capitalization.

In response to Textron’s announcement, Standard & Poor’s lowered its rating on the stock to “Sell.” While S&P sees Textron’s plan to meet its obligations in 2009 as achievable, it said the plan’s success is dependent on realizing a significant part of planned finance-division asset sales and receivables liquidations, which S&P called “a risk.”

S&P cut its 2009 earnings estimate for the Textron by more than half and halved its price target “on liquidity risk.”